Navigating Redundancy: A Guide to Rebuilding and Reinventing Yourself

Facing redundancy is undoubtedly a challenging and emotionally charged experience. Whether it's due to economic downturns, organisational restructuring, or unforeseen circumstances, losing your job can be a tough pill to swallow. However, amidst the uncertainty, there are constructive steps you can take to not only cope with the situation but also to turn it into an opportunity for personal and professional growth.

Let's first take a look at what redundancy is, your rights as an employee if you find yourself at risk of, or have been made redundant and how to make sure you've received the correct redundancy package.

What is redundancy?

Redundancies essentially involve making certain jobs redundant which, in turn, makes people surplus to requirements. They’re usually fuelled by the need to reduce staff numbers. Being made redundant isn’t the same as being sacked. According to ACAS, employers should only make people redundant if part or all of the company is:

• Closing or has already closed
• Changing the type or number of roles required to carry out work
• Relocating

Employers can only make people redundant in response to business needs, not because they have a specific issue with you. If your employer makes less than 20 employees redundant, this is referred to as an individual redundancy. If more than 20 employees are being made redundant within 90 days, this is known as collective redundancy.

Regardless of if you’re at risk of individual or collective redundancy, your employer must follow a fair redundancy process , particularly if you’ve worked for them for at least two years by the time your job ends.

Employees’ redundancy rights

Employers should ideally go down the redundancy path as a last resort. Alternatives to redundancy, include redeploying or training staff, job sharing, flexible working, volunteer career breaks and early retirement.

If you are being redundant, you may be entitled to:

• Redundancy pay
• A notice period (more on this below)
• Consultation with your employer
• The option of moving to another job
• Time off to find another job

While the prospect of being made redundant can be daunting, don’t let it put you off from fully exploring your rights and what you might be entitled to.

Note – if you’ve been continuously working for your employer for the last two years (by the date your notice period ends), current Government guidance states you can have time off to:

• Go job-hunting
• Arrange training to help you find another job

Redundancy notice

If you're being made redundant, your employer must tell you how long your notice period is going to last and continue to pay you right up to the very end of it.

Generally speaking, most employees continue to work during their notice period, which is calculated based on how long people have worked for their employer for. For peace of mind, and based on best practice guidance from ACAS, it’s always useful to ask your employer to clarify the following in writing:

1. The start and end date of your notice period.

2. Any allowances around leaving before your notice period is up.

3. If you’re allowed to take any unused annual leave before your notice period ends.

4. What happens re: your contractual benefits, e.g. fuel cards, work mobile phone bills etc.

Calculating redundancy pay

Statutory redundancy pay is based on three factors - how old you are, your weekly wage (gross pay) and how many years you’ve been doing your job for. (Note – you only qualify for statutory redundancy pay if you’ve been working for your employer for at least two years).

• 17 to 21-year-olds – are entitled to receive half a week's pay for each full year you’ve worked for your employer
• For 22 to 40-year-olds – it’s a week’s pay for each full year you’ve worked for your employer from the age of 22 (but under 41)
• If you’re aged 41 or over – your employer must give you one and a half week’s pay for each full year you worked for your employer from the age of 41 or older

If you’re unsure about whether or not you’re entitled to redundancy pay, speak to your employer and/or check your employment status.

As for calculating your actual statutory redundancy pay, there are some online tools you can use, including the Government’s online calculator - https://www.gov.uk/calculate-your-redundancy-pay

Our top tips on what to do if you've been made redundant:

1. Allow Yourself to Feel: It's crucial to acknowledge and process your emotions. Losing a job can bring about feelings of shock, disappointment, and even anxiety. Take the time to grieve the loss of your position and allow yourself to feel a range of emotions. Seek support from friends, family, or a professional counselor if needed.

2. Understand Your Rights: As we've mentioned above, familiarize yourself with the terms of your redundancy package, including any severance pay, benefits, or resources provided by your former employer. Knowing your rights will help you plan your financial situation and make informed decisions about your next steps.

3. Financial Planning: Evaluate your financial situation and create a budget to manage your expenses during the transitional period. Cut unnecessary costs, prioritise essential expenditures, and explore options such as unemployment benefits or government assistance if applicable.

4. Update Your Professional Presence: Refresh your CV, update your LinkedIn profile (add the green open to work circle), and ensure that your online professional presence accurately reflects your skills and achievements. Tailor your CV for each job application, showcasing how your experience aligns with the specific requirements of the roles you're interested in.

5. Explore New Opportunities: Use this time as an opportunity to reassess your career goals and explore new opportunities. Consider industries or roles that align with your skills and passions. Attend networking events, connect with industry professionals, and leverage online platforms to expand your professional network.

6. Skill Enhancement: Identify any skills gaps or areas for improvement in your professional toolkit. Invest time in upskilling or acquiring new certifications that are relevant to your desired career path. Online courses, workshops, and industry conferences are excellent resources for expanding your skill set.

7. Entrepreneurial Ventures: If the circumstances allow, explore the possibility of freelancing. This can provide flexibility and the chance to build something of your own or bring in money whilst you look for the right permanent position.

8. Maintain a Healthy Routine: A routine can provide structure during a period of change. Maintain a healthy balance between job searching, self-improvement, and personal time. Incorporate activities that bring joy and relaxation to help manage stress.

9. Stay Positive and Resilient: Job loss is a setback, but it doesn't define your worth or potential. Stay positive, believe in your abilities, and remain resilient in the face of challenges. Surround yourself with a supportive network that encourages your efforts to move forward.

10. Seek Professional Guidance: Consider seeking guidance from career counselors, coaches, or mentors who can provide valuable insights and help you navigate your career transition. Professional support can offer fresh perspectives and strategic advice.

While redundancy may feel like the end of one chapter, it's also the beginning of a new opportunity for growth and reinvention. By taking proactive steps, maintaining a positive mindset, and leveraging available resources, you can turn this challenging period into a stepping stone toward a more fulfilling and successful future.